Godrej Consumer Products Limited · NSE:GODREJCP
Godrej Consumer Products — Q2 FY2025 Earnings Presentation
32 slides from Godrej Consumer Products's earnings presentation, Oct 24, 2024
Slide 1: Q2 FY2025 Performance Update
Q2 FY2025 Performance Update October 24, 2024
Slide 2: Disclaimer
Disclaimer Some of the statements in this communication may be forward looking within the meaning of applicable laws and regulations. Actual results might differ substantially from those expressed or implied. Important developments that could affect the Company’s operations include changes in the in
Slide 3: The Goodness Manifesto
The Goodness Manifesto OUR OUR PURPOSE Bringing the goodness of health and beauty to VALUES consumers in emerging markets Lead through category Funded by OUR development simplification STRATEGY OUR OPERATING 1 Less is more; Much 2 Consumer first, 3 Think local, 4 Tomorrow 5 People and planet, less i
Slide 4: Financial Performance Update
FINANCIAL PERFORMANCE UPDATE
Slide 5: Key highlights
Key highlights 7% 7% 8% Consolidated Standalone Indonesia EBITDA UVG^ UVG^ growth 5 ^Underlying Volume Growth
Slide 6: Higher input costs impacts profit growth
Higher input costs impacts profit growth Growth (year-on-year) Consolidated Standalone Underlying Volume Growth 5%* 7% Net Sales 2% (5%*) 7% Net Sales (Constant Currency) 10% (14%*) - EBITDA 8% Flat Net Profit (Reported) 14% (19%) Net Profit (without exceptionals and one-off items) 12% 4% 6 *Organic
Slide 7: Strong underlying sales growth impacted by currency headwinds
Strong underlying sales growth impacted by currency headwinds Sales Growth Constant Currency Growth Geography ( crore) (Year-on-year) (Year-on-year) Standalone 2,278 7% - Indonesia 513 9% 11% Reported 643 (21%) (12%) Africa, USA & Middle East Organic 643 (10%) Flat Latin America and Others 246 36% 1
Slide 8: Continuing robust EBITDA margin expansion across international geographies
Continuing robust EBITDA margin expansion across international geographies Africa, USA Latin America Consolidated Standalone Indonesia & Middle East & Others Q2FY25 Operating EBITDA margin* 20.8% 24.3% 19.4% 14.4% 5.7% Change in EBITDA margin +110 (160) +140 +590 +660 (bps) (y-y) 8 * After adjusting
Slide 9: Net profit reconciliation statement
Net profit reconciliation statement Consolidated Standalone Q2 FY2025 Q2 FY2024 Q2 FY2025 Q2 FY2024 (A) Net Profit (Reported) 491 433 393 485 (B) Exceptionals (Post tax): Restructuring costs 5 11 - - (C) Net Profit (Without exceptionals) (A+B) 497 443 393 485 (D) One-offs Dividend from subsidiary - - -
Slide 10: Standalone Business Update
STANDALONE BUSINESS UPDATE
Slide 11: Home Care (1/3): Improved performance in Household Insecticides
Home Care (1/3): Improved performance in Household Insecticides • Household Insecticides grew in mid-single digit in volume terms • New Liquid Vaporizer has been well received with positive initial consumer feedback; will take 1-2 quarters for complete distribution • Goodknight Agarbatti continues t
Slide 12: Home Care (2/3): Air Fresheners delivers consistent double-digit growth
Home Care (2/3): Air Fresheners delivers consistent double-digit growth • Air Fresheners continue to consistently deliver strong double-digit volume growth • Continue to gain market share and enjoy market leadership • Aer O continues to outperform, along with gaining market share 11 12
Slide 13: Home Care (3/3): Robust performance in Liquid Detergents
Home Care (3/3): Robust performance in Liquid Detergents • Fabric Care delivered strong double-digit volume growth • Genteel and Godrej Fab continue to perform very well and gain market share LIQUID DETERGENT 13
Slide 14: Personal Care (1/5): Personal Wash impacted by higher input costs
Personal Care (1/5): Personal Wash impacted by higher input costs • Personal Wash delivers flattish volume growth; continue to gain market share • Category has been witness to higher-than-anticipated inflation in palm; leading to margin erosion which is likely to continue for the remainder of the ye
Slide 15: Personal Care (2/5): Significant increase in palm oil prices
Personal Care (2/5): Significant increase in palm oil prices is leading to re-balancing of growth and margin • Palm Oil and its derivatives' prices have been on a rising trend and have increased in high double-digits since the start of the year • Management has decided not to pass on the entire cost
Slide 16: Personal Care (3/5): GCPL, a firm believer in providing high quality soaps
Personal Care (3/5): GCPL, a firm believer in providing high quality soaps • GCPL is a firm believer in providing high-quality soaps. This strategy has resulted in almost doubling its soaps market share over the past decade while significantly increasing its Relative Price Index. • ‘Structuring’ is an
Slide 17: Personal Care (4/5): Hair Colour delivers strong performance
Personal Care (4/5): Hair Colour delivers strong performance • Hair Colours volume grew in double-digits • Godrej Expert Rich Crème access packs continue to outperform • Shampoo Hair Colour continues to grow in strong double-digit in volume terms 17
Slide 18: Personal Care (5/5): Park Avenue and KamaSutra performance on track
Personal Care (5/5): Park Avenue and KamaSutra performance on track • Both Deodorants and Sexual Wellness delivered strong double-digit volume growth • Sexual Wellness continues its healthy performance and continues to gain market share 18
Slide 19: Double-digit growth in Home Care
Double-digit growth in Home Care Sales Growth Category ( crore) (Year-on-year) Home Care 1,016 12% Personal Care 1,176 3% Total Branded 2,192 7% Unbranded and Exports 86 21% Total Net Sales 2,278 7% 19 Note: All values are rounded off
Slide 20: International Business Update
INTERNATIONAL BUSINESS UPDATE
Slide 21: Indonesia continues to deliver strong volume growth and margin expansion
Indonesia continues to deliver strong volume growth and margin expansion • Constant Currency sales growth of 11% and • Margin improvement continues INR sales growth of 9% • EBITDA margin up ~140 bps year-on-year • Delivered UVG of 7% Growth (y-y) EBITDA margin (y-y) 11% 19.4% 9% 7% 18.0% CC Sales US
Slide 22: Category development initiatives lead to strong performance in Stella
Category development initiatives lead to strong performance in Stella • Stella volume grew in strong double-digit led by focused media and marketing interventions • Stella Electric Diffuser, launched recently, has been well received and is gaining market share • Hair Colours recorded strong double-d
Slide 23: Third consecutive quarter of profit growth in Africa, USA & Middle East
Third consecutive quarter of significant INR profit growth and margin expansion in Africa, USA & Middle East EBITDA (in crores) EBITDA margin % 93 14.3% 14.4% 14.4% 85 78 ~8.5% Q4FY24 Q1FY25 Q2FY25 Last 5 year Q4FY24 Q1FY25 Q2FY25 average Growth 56% 19% 33% (y-y) 23 Note: All values are rounded off
Slide 24: Moving forward on our journey to expand International business EBITDA margin
Moving forward on our journey to expand International business EBITDA margin International business* EBITDA margin % 16% 13% 10% FY23 FY24 H1FY25 24 * Includes Indonesia, Africa, Middle East & USA, Latin America and Others
Slide 25: Environmental, Social, and Governance Update
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE UPDATE
Slide 26: Our ESG targets for FY2025-26 and Q1 FY2025 performance
Our ESG targets for FY2025-26 and Q1 FY2025 performance Environment* Vision Goals for FY2025-26 Performance update Influence Ensure efficient waste management systems for 7 municipalities in India Ongoing community waste management projects in 4 municipalities sustainable diverting over 8,000 MT of w
Slide 27: Our ESG targets for FY2025-26 and Q1 FY2025 performance
Our ESG targets for FY2025-26 and Q1 FY2025 performance Environment* Vision Goals for FY2025 Performance update Lead in 45% reduction in GHG emission intensity and carbon neutrality for 48% reduction in GHG emission intensity sustainability Scope 1 and 2 from FY11 baseline action 40% reduction in sp
Slide 28: Our ESG targets for FY2025-26 and Q1 FY2025 performance
Our ESG targets for FY2025-26 and Q1 FY2025 performance Social* Vision Goals for FY2025 Performance update Equip communities Empower 60,000 women in beauty skills, across Trained, upskilled and reached out to 24,565 women beauty with skills that emerging markets globally entrepreneurs, young girls,
Slide 29: Shareholding Pattern
SHAREHOLDING PATTERN
Slide 30: Shareholding pattern as on September 30, 2024
First Sentier Others 6.4% Blackrock DII 9.4% Vanguard Others FII 21.7% Capital Group Promoters GIC 62.5% SBI SBI Pension Government Pension Fund Global Aditya Birla Sun Life HDFC As on September 30, 2024 30
Slide 31: Contact Us
Contact Us Institutional investors Retail investors Vishal Kedia R Shivshankar Email: vishal.kedia@godrejcp.com Email: r.shivshankar@godrejcp.com Tel: +91 22 2519 5721 Tel: +91 22 2519 4359 Aditya Kasat Email: aditya.kasat@godrejcp.com Tel: +91 22 2519 6328 31
Slide 32: Thank you
Thank you www.godrejcp.com
Godrej Consumer Products — Q2 FY2025 Earnings Presentation on 6ix